MILANO – The tax reform starts with the constraint of budgetary resources to be dedicated to it.
The Minister of Economy, Daniele Franco, said this in a hearing with the Finance committees. The interventions on Irpef and Irap “are certainly the most urgent to which it will be appropriate to allocate resources as soon as they are available. The simplification action must be started quickly and more generally everything that does not have a cost for public finances should be carried out from immediately “, explained Franco. The government’s commitment is to “prepare a reform system that can be gradually introduced over time, as we recover resources in implementing the delegation itself, also through the fight against tax evasion and the rationalization of spending”.
For the tax reform, “the issue of available resources is fundamental: for the easing of the levy we cannot jeopardize the keeping of the accounts in particular at this stage”, he detailed adding that the issue of resources will be “managed in the context of of the next budget sessions “. Now “we are not able to define the margins” of intervention. The economic outlook is “still subject to a high degree of uncertainty” due to the evolution of the pandemic and the spending commitments to be made, for example, for structural changes in healthcare.
Tax, Franco’s stakes: “Pay attention to the accounts”
by Roberto Petrini
“By the end of this month”, the government will present the delegated law proposal on tax reform and “will take into account the indications contained in the parliamentary document”, he assured in reference to the series of proposals that emerged from the work of the Commissions. “I believe I have already said that the balance sheet is not in the document” of the Finance commissions “and will not be in the delegation”, he remarked.
Franco recalled that “it is not a good idea to change taxes one at a time”. “The fundamental pillars of the system, the progressive personal income tax, and the value added tax remain valid, but need a profound renewal of their characteristics and their functioning”.
After many adjustments and revisions, which have changed the original structure, the maintenance of IRAP “no longer appears justified, there is a need for simplification”.
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